Bhutan government-linked wallet transfers 929 BTC to Binance amid Bitcoin price hike

The Royal Government of Bhutan has made a big move by depositing 929 BTC into crypto exchange Binance.

The move was signaled after BTC rose above $70,000 for the first time since June 10.

Transfer Bitcoin to Binance

Lookonchain, citing information from Arkham Intelligence in a new tweet, revealed that a wallet linked to the Bhutanese government transferred its stash worth $66.16 million in two transactions on October 29.

Currently, Bhutan holds 12,456 BTC which is approximately $891 million. The reasons behind the move are unclear, but deposits into crypto exchanges are often linked to plans to sell assets, especially as the move comes after bitcoin rose more than 5% in the previous day to above $71,700. BTC went further in the following hours, adding $73,000 for the first time since its ATH in March.

Interestingly, this is the first time Bhutan has sent Bitcoin to a crypto exchange since Bhutan deposited 381 BTC into Kraken in July. Additionally, ten days ago, the nation-linked 228.8 ETH, worth $600,000, was transferred to the Binance hot wallet, making it the only significant cryptocurrency holding of $1.72 million in Ether.

Bhutan Bitcoin Reserves

Unlike many countries that acquire bitcoins through criminal seizures, Bhutan has been actively producing the cryptocurrency since 2017, when it reached $5,000, according to some reports. Located in the eastern Himalayas, the landlocked country has been harnessing its abundant hydroelectric resources for sustainable mining practices.

The Bhutanese government has partnered with Nasdaq-listed mining company BitDeer to operate a 100% carbon-free Bitcoin mining operation in the country by May 2023.

As a result of these efforts, Bhutan is now the fifth-largest holder of BTC, following the United States, China, the United Kingdom and Ukraine, according to data compiled by Bitc Treasuries. The properties are owned by Druk Holdings and Investments, the investment arm of the Bhutanese state.

Bhutan has turned to bitcoin mining as a new source of income following a decline in tourism revenue due to the Covid-19 pandemic. According to local media ‘The Bhutanese', money from bitcoin mining has helped raise the salaries of some government officials by 50%.